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Dairy Marketing Chains Analysis: The Case of Shashemane-Yergalem Milk Shed, Southern Ethiopia


This study uses the Heckman two stages estimation procedures to identify factors affecting probability of milk market entry decision and milk volume supplied in Shashemane,-Yergalem milkshed, southern Ethiopia. The result showed that age, family size, education level, experience in dairy production, number of cross bred milking cows owned, distance from milk market center, age squared and annual non-dairy income source are factors determining dairy household milk market participation and milk volume supplied. Milk was the most produced, traded and consumed dairy product in the milkshed whereas butter and cheese were transported from Wolayita and Sidama areas as the areas are deficient in cooking butter and cheese. Dairy producer, producer trader, retailers, semi-wholesalers and dairy producer cooperative, and producers, farmer trader, itinerate traders, semi-wholesaler and retailers were milk and butter market economic agents, respectively. The S-C-P model identified that the market for dairy was competitive. The highest net return/lit for milk market was obtained by dairy producers. The study concludes that education, improved milk cow number, distance from milk market and access to quality financial sources variables should receive a considerable attention from both government and development concerned individuals and institutions in order to improve the sector performance

Corporate Author: 
Getnet Alemun & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
Primary Descriptors: 

Dairy cow, Market Participation,

Secondary Descriptor: 

Milkshed, Milk, Butter

Geographic Descriptors: 
Ethiopia, Southe
Cataloge Date: 
Broad Subject heading: 
Agricultural development - Dairy farm
Call Number: 
330.963 PRO 2010
Serial Key Title: 
Proceedings of the Seventh International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-05-27 23:10:00
Forum or Discussion date: 
2013-02-27 15:43:08
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: